Posted by Greg on April 26, 2004 at 11:10:42:
Don’t forget that you’re getting the home AND the land. Try to find out what an equivalent lot, set up for a MH, goes for in that area. It’s possible that it’s a good deal at more than $10,000.
MH and land - Posted by Randall Badgett
Posted by Randall Badgett on April 22, 2004 at 22:51:49:
The other day a woman called asking if I would make a loan to her because she was moving and needed $11,000.00 to be able to buy the place that she wanted to move to. After asking her several questions she told be she was also trying to sell her current mobile home and the land it was sitting on. She said it contained nearly an acre and the mobile home was a 83 model that was 53 or 52 feet long. I believe it was also 14 feet wide. I then asked her how much she wanted for it and instead of a loan would the money she got from the land cover her new purchase and she said it would. She stated they were asking $15,500.00 for her current home and land. Its also listed with a realtor. I was at work when the lady called me and I told her I would get back in touch with her ASAP. The next day I called her and she said she had got the money needed to buy her new property. I asked her how close 11k would get to buying her current home, and she said she would take that. I went to look at it today. The MH could use a good pressure washing outside, but was in pretty good shape. The inside was actually very clean and in tip top shape. With new plywood floors through most except one bedroom of the home. Comes with working fridge and stove, porch, two small storage buildings and city water. There is no sign of any leaks in the roof. 2 bedroom and one bath. The land did appear to be about an acre, but its all hill. Barely room for the one mobile home. There is probably 25 feet of front yard before it goes down hill. What do you guys think? I had in mind of a Lonnie deal. Sell the home, rent the land. Although I have seen land go for $5000.00 and acre here and mostly flat. Any ideas? Thanks.
Randy
Re: MH and land - Posted by Bill
Posted by Bill on April 23, 2004 at 18:15:49:
It all depends on how much rent you can get for it!
I just purchased a 1987 3br 2 bath in very good condition. City water and sewer. Total repairs look like will only be $400. Just got the air conditioner repaired for $200 and then some misc repairs. I have also decided to replace all appliances. New stove, refrig, washer and dryer. Total Home Depot cost $1,300. I paid $18,500 for mobile home and 2 lots 100x100. This is a nice subdivision where the lots go for 15k. This was a Fanie May Repo and no one knew it was 2 lots. I did my homework at the courthouse. This mobile will rent for $475 month. The other lot will get a mobile next month. If you can get good rent for it, $350 or more, I would go for it around the 10k mark. Remember it cost to improve the lots to put mobile homes on them.
Re: MH and land - Posted by Greg
Posted by Greg on April 23, 2004 at 10:38:54:
While I don’t know your market, that sounds like a deal.
Then you can either rent the mobile to someone, or Lonnie the MH and keep the land. The latter sounds like less work to me.
Re: MH and land - Posted by joshua
Posted by joshua on April 22, 2004 at 23:22:17:
You might have a hard time selling it, because it will be hard to get financing for anyone. I would only buy it a little over the value of the land only, and you want to use it as a rental.
Re: MH and land - Posted by Randall Badgett
Posted by Randall Badgett on April 23, 2004 at 17:44:42:
I think the owners are somewhat highly motivated to sell also. The money I mentioned that they wanted to borrow from me they actually got from friends and family. Now they owe several people and there looking for cash anyway they can get it, plus they are moving about 45 minutes to an hour away from this property. He mentioned he didn’t want to drive back and forth checking on it and keeping grass cut, etc. I think eventually I can get it for about 9 or $10,000.00 I wasn’t sure before about the size of the MH but now I know its a 14X56. I told them this is more than what I normally invest into a MH, but I would see if I could make it work, and if they could make it more appealing to call me back.
Randy
Re: MH and land - Posted by Greg
Posted by Greg on April 24, 2004 at 19:41:03:
The fact that it’s hard to get financing is the whole point. The ideal investment opportunity is an asset which is very hard to finance, but sits on land THAT YOU OWN. Then you finance it on your terms.
I live just outside of Philadelphia, and it is very hard to find areas which permit mobile homes. I would be very happy to find a lot like Randall Badgett has the opportunity to buy.
Re: MH and land - Posted by Oliver
Posted by Oliver on April 23, 2004 at 24:08:36:
What do you mean it would be hard to get financing? He would, of course, finance the home himself. Or rent it.